Automakers Loosen Ties With Holding Companies
In early 2007, when Chrysler sought a new creative direction for its Jeep brand, it mulled ideas from five Omnicom Group agencies before shifting national creative duties from BBDO to Cutwater.
The “keep it in the family” review was typical of the arrangement that Omnicom had with major clients, including Chrysler and PepsiCo.
This month, however, as Chrysler again seeks new ideas on its Chrysler and Dodge brands, it’s considering several non-Omnicom agencies, including MDC Partners’ Crispin Porter + Bogusky, Publicis Groupe’s Publicis & Hal Riney and WPP Group’s Grey, said sources.
(At press time, sources said that consideration of WPP’s global relationship with mega-client Ford might lead Grey to withdraw.) The incumbent, Omnicom’s BBDO, is also participating, with presentations slated for next week.
The shift in Chrysler’s approach and some loosening of the restrictions that GM previously put on agencies within Interpublic Group—GM is the company’s largest client—indicate to different degrees that the old “club rules” don’t necessarily apply anymore.
Concerns about preserving long-standing agency and holding company arrangements have ceded to the knotty challenges these clients face. Each company fell into bankruptcy in the spring and re-emerged with federal funding and new leadership. They now grapple with eroding market share and the difficulty of creating consumer demand amid a lingering recession.
“When there’s profound client change, that’s what happens,” a source said.
In this context, agency or holding company loyalty—even after holding companies stood by clients during bankruptcy—isn’t necessarily a top priority.
Doing whatever you need to do to sell cars is. That said, sources point to the fraying relationship between Chrysler and BBDO/Omnicom in particular and suggest that a new “open-market” approach toward soliciting agencies is taking root. As one source put it, “A lot of clients are looking for fast-track results, so they’re willing to throw everything up in the air.”
Chrysler last week declined to comment on the changing dynamic and reiterated a statement that said in part, “As we launch a new company with a brand-focused organization, we are looking for fresh ways to communicate in the marketplace.”



